EURUSD Movement
For the 24 hours to 23:00 GMT, the EUR declined 0.44% against the USD and closed at 1.2081, following an unexpected drop in German retail sales data.
On the economic front, Germany’s flash consumer price index (CPI) advanced more-than-anticipated by 1.6% on an annual basis in April, compared to market expectations for a rise of 1.5%. In the prior month, the CPI had registered a similar rise.
On the other hand, the nation’s retail sales unexpectedly fell 0.6% on a monthly basis in March, declining for the fourth consecutive month and confounding market consensus for a gain of 0.8%. In the prior month, retail sales had recorded a revised drop of 0.2%.
In the US, data indicated that personal spending grew 0.4% on a monthly basis in March, meeting market expectations and following a revised flat reading in the prior month. Meanwhile, the nation’s personal income climbed 0.3% on a monthly basis in March, compared to a revised similar rise in the prior month, while investors had anticipated for an increase of 0.4%.
In other economic news, pending home sales in the US advanced 0.4% on a monthly basis in March, undershooting market expectations for a rise of 0.7%. In the prior month, pending home sales had registered a revised gain of 2.8%. Moreover, the nation’s Chicago Fed purchasing managers index climbed to a level of 57.6 in April, compared to a level of 57.4 in the prior month, while markets were anticipating for an increase to a level of 58.0.
In the Asian session, at GMT0300, the pair is trading at 1.2076, with the EUR trading slightly lower against the USD from yesterday’s close.
The pair is expected to find support at 1.2047, and a fall through could take it to the next support level of 1.2018. The pair is expected to find its first resistance at 1.2122, and a rise through could take it to the next resistance level of 1.2168.
Amid no macroeconomic releases in the Euro-zone today, investors would focus on the US ISM manufacturing and the final Markit manufacturing PMIs, both for April followed by construction spending data for March, all scheduled to release later today.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
